Home GST ITC to be Applicable to Rooftop Solar Systems Under GST Rules: AAR

ITC to be Applicable to Rooftop Solar Systems Under GST Rules: AAR

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ITC to be Applicable to Rooftop Solar Systems Under GST Rules: AAR

ITC to be Relevant to Rooftop Photo voltaic Programs Beneath GST Guidelines: AAR

The Gujarat Authority for Superior Ruling (AAR Gujarat) within the matter of Distinctive Welding Merchandise P Ltd. has stated rooftop solar energy techniques represent plant and equipment and, subsequently, are eligible for enter tax credit score beneath the Items and Providers Tax (GST) Act.

The applicant provides its services after discharging GST @18%. The applicant has entered into an interconnection settlement with an influence distribution licensee (Madhya Gujarat Vij Firm Ltd) for captive use of energy generated by Roof High Photo voltaic System and has lately put in a rooftop photo voltaic system with a capability of 440 KW (AC) on the manufacturing unit roof for energy era. The applicant additional states that the generated energy is solely and captively used for manufacturing welding wires throughout the similar premises.

The Questions and Ruling are as follows:

1. Whether or not the applicant eligible to take ITC as ‘inputs/capital items’ or ‘enter providers’ on the bought rooftop photo voltaic system with set up and commissioning when it comes to sections 16 and 17 of the CGST/ GGST/ IGST Act?

2. Whether or not the rooftop photo voltaic system with set up and commissioning represent the plant and equipment of the applicant that are used within the enterprise of producing welding wires and therefore not blocked enter tax credit score beneath part 17(5) of the CGST/ GGST/ I GST Act?

Ruling

1. The applicant is eligible to avail ITC on rooftop photo voltaic techniques with set up and commissioning beneath the CGST/ GGST Act.

2. The rooftop photo voltaic system with set up and commissioning constitutes the plant and equipment of the applicant and therefore shouldn’t be blocked ITC beneath part 17(5) of the CGST/ GGST Act.

For Official Ruling Obtain PDF Given Under:

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